Withholding of license increasingly provoking acid comments from Chinese
military to MAAG that US does not trust
GRC to keep its pledged word.
Minister Defense Yu in discussing issue with Chief MAAG Sanborn33. Major General Kenneth O. Sanborn. August 21 pointed out
GRC had committed itself not to
attack mainland without US agreement, and continued withholding of
license on such minor item as rubber boats could only be interpreted as
demonstrating serious lack of trust in an ally. He said US and GRC had reached “psychological impasse”
over this question.

We may soon have to respond to GRC
request for bombers and landing craft. I do not think it is wise to
complicate our handling of that problem by further delay in licensing
item which represents only relatively slight increment to GRC lift capability which they could obtain
in any case without our help. I therefore recommend going ahead with the
licensing. TDC, MAAG [less than 1 line of source text not
declassified] concur.

1 Telegram 128 to Taipei, August 16, was a message
from Harriman to Kirk concerning whether an export
license should be granted for a GRC
order for 200 rubber assault boats. It noted reasons for believing
the GRC wanted the boats for use
from the offshore islands and stated that granting an export license
might undermine U.S. policies of “attempting prevent provocations
from offshores” and “localizing any new offshores crisis if it
breaks out.” It concluded, however, that the question had to
considered in the context of other problems and stated, “If after
considering foregoing you personally want license issued, we will do
so.” (Ibid., 793.56/8-662) Other documentation concerning this issue
is ibid., 793.56.